posted at 8:33 am on June 1, 2012 by Ed Morrissey

Jim Pethokoukis called this a “huge miss” on Twitter, and he’s right. Analysts expected the US economy to add 150,000 jobs in May. Instead, we saw only a net gain of 69,000 jobs, and the jobless rate went up slightly to 8.2%:

Nonfarm payroll employment changed little in May (+69,000), and the unemployment rate was essentially unchanged at 8.2 percent, the U.S. Bureau of Labor Statistics reported today. Employment increased in health care, transportation and warehousing, and wholesale trade but declined in construction. Employment was little changed in most other major industries.

The long-term unemployed jumped up by 300,000 as well, while participation ratios rose:

The number of long-term unemployed (those jobless for 27 weeks and over) rose from 5.1 to 5.4 million in May. These individuals accounted for 42.8 percent of the unemployed. (See table A-12.)

The civilian labor force participation rate increased in May by 0.2 percentage point to 63.8 percent, offsetting a decline of the same amount in April. The employment- population ratio edged up to 58.6 percent in May. (See table A-1.)

The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) edged up to 8.1 million over the month. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job. (See table A-8.)

In other words, this is an unmitigated flop.

As noted, U-3 (the topline jobless rate) went from 8.1% to 8.2%, the first increase of any kind in that measure since June 2011. The U-6 figure, which comprises all unemployed and marginally attached workers, rose from 14.5% to 14.8%. The only really positive news was a fairly significant drop in the number of people not in the labor force, which went from 88.419 million to 87.958 million, a difference of 461,000 workers. However, the increase in underutilization tempers that improvement quite a bit.

CNBC reports that job creation stalled out in May, and warns of another Recovery Summer summertime swoon:

The American jobs engine hit stall speed in May, with the economy adding just 69,000 new jobs while the unemployment rate climbed to 8.2 percent.

As another summertime swoon looms, the Bureau of Labor Statistics reported that job creation missed economist estimates for 158,000 new positions, and said labor force participation remains near 30-year lows though incrementally better than last month.

In May, stocks suffered through their worst month in two years, and the job-creation figures only added to the gloom.

Stock market futures indicated a sharply lower open for Wall Street, while investors continued to pour into bonds, sending the 10-year Treasury note yield tumbling to near 1.47 percent.

The AP points out that this is the worst jobs report in a year, as I did above. The report also notes that the BLS revised the previous two month’s figures sharply downward, knocking 49,000 off of those figures:

U.S. employers created 69,000 jobs in May, the fewest in a year, and theunemployment rate ticked up. The dismal jobs figures could fan fears that the economy is sputtering.

The Labor Department also says the economy created far fewer jobs in the previous two months than first thought. It revised those figures down to show 49,000 fewer jobs created. The unemployment rate rose to 8.2 percent from 8.1 percent in April, the first increase in 11 months.

Finally, no round-up would be complete without checking in with Reuters, where bad news is usually unexpected. Not today, however:

Job growth in May was the weakest in a year and employers added far fewer jobs in the prior two months than previously reported, suggesting the economic recovery was faltering.

Employers created a paltry 69,000 jobs last month, the Labor Department said on Friday, the fewest since May last year. Economists polled by Reuters had expected nonfarm payrolls to increase 150,000.

In addition, employers added 49,000 fewer jobs than previously estimated in March and April. The unemployment rate rose to 8.2 percent from 8.1 percent as people flocked into the labor market.

Barack Obama had been expected to talk about jobs and the economy in his campaign stop today at a Honeywell plant in Minnesota. There is no positive spin that can be put on this report. It’s an indictment of Obama’s stagnation and incompetence at economics. That doesn’t mean Obama won’t try to spin this as a positive report, so be sure to keep an eye on his response today.

Update: Yesterday’s surprise appearance at Solyndra resulted in a new ad from Mitt Romney’s campaign attacking Barack Obama on job growth and stimulus. This is not just serendipity — the Romney campaign was ready for this report:

“The President fails to understand the basic nature of free enterprise in America.” Today, that message may resonate even more. The turnaround time on this spot is rather amazing — less than 24 hours.

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It’s amazing that so many in the echo chamber actually believe that a few regulatory or other changes will actually fix the economy and undo the fundamental forces of globalism that have moved millions of jobs from the US to abroad.

bayam on June 1, 2012 at 10:24 AM

You are partially right, and partially wrong.

Part of the problem, and there are clearly no quantifiable factors to verify this, is that the general business community does not trust Obama. From the time he first emerged onto the scene he has talked about re-distributing the wealth (his words, not mine). To business, that means higher taxes, higher fees, higher compliance costs, etc… While one extra level of compliance does not seem like much, and for many large companies it is not very much, for a small business that hits their bottom line. Even for a public corporation, that has to meet earnings, etc.., the cost of complying with 1 new piece of regulation means spending money to either hire compliance people, training current compliance people to understand, updating protocols to ensure compliance, etc.. That is just with one thing. Now, add to that the fact that under this President, there have been hundreds, if not thousands, of new regulations that must be complied with. When you add on to that the threat of higher taxes, costs to comply with Obamacare, etc.., and the inevitable raising of new taxes and creation of new regulations in a 2nd Obama term, and the toll adds up for both companies large and small.

So, getting rid of some regulations might not seem like much, but it matters to companies in the long run. However, the real importance of getting rid of Obama is to remove teh uncertainty. With Romney, they will know that there will not be countless new regulations, there will not be increased taxes, and there will be a predicatable 4 years in which they can have their company grow.

Now, you are 100% correct about the impact of globalism. And it is a shame that neither party has the courage to do what is necessary to stop outsourcing, stop giving jobs to foreign workers at the expense of Americans via work visas, etc.. Honestly, unless either party decides to tackle this issue, the economy is never going to completely recover.

Even the moist brainwashed lemmings with single digit IQs are starting to realize that the constant lies and deceptions from The One and his classroom sychophants cannot disguise the unprecedented incompetence and corruption that is rampant in this administration. Ariel Durant said, “A great civilization cannot be conquered from without until it destroys itself from within.” We ar watching Barry Soetero do it right before our eyes. The Choom Gang rides again.

WOLFSBURG, Germany (Reuters) — A top German union official will explain to hourly employees at Volkswagen’s U.S. plant in early June that his group will not pressure them to join the UAW, the automaker’s top labor representative said today.

The UAW is relying heavily on the IG Metall, which has members on VW’s works council, to help it organize German-owned U.S. plants because the German union has influence with VW management.

While the VW works council supports the UAW’s efforts to organize workers at the company’s plant in Chattanooga, Tenn., it will not use its influence to help the U.S. union, works council chief Bernd Osterloh said at VW’s headquarters here. The works council is the labor counterpart to company management, consisting of representatives from all the factories and brands in the VW group.

Bayam, this one’s for you, since you seem to have a crystal ball, and can accurately tell us what REALLY WOULD’VE happened if Obama hadn’t SAVED us from certain doom…

Economically, applying Obama to America was akin to only pouring alcohol on a gut-shot; Sure, you MIGHT stop an infection, but you’re still gonna die…and the alcohol will impede clotting, so you may even speed things along.

I wish Milton Friedman was still alive…and that people would listen to him.

I can hope that at long last after the experience with little Bammie that Keynesianism would be thrown on the ash-heap of history, but it’s not likely to happen. Like Marxism itself, there’s always someone that will come along and tell us that they can implement it properly, this time.

Does anyone know how the lie that the Bush tax cuts were for the rich? Anyone with a basic knowledge of math knows it’s the exact opposite. The top tax rate went from 39.6% down to 35%, the lowest tax rate went from 15% all the way down to 10%.

The poorest tax bracket got a 33% tax cut while the rich got an 11% tax cut. Or in other words the poorest tax bracket got over 200% more of a tax break than did the richest.

May, 2012: Economy added a whole net 69,000 jobs added. Whoop-dee-doo! When discourage workers are added, the unemployment rate rises to 14.8%. 461,000 workers fell out of the workforce…and off of the face of the earth?

Romney seems to understand how to campaign and have reactionary skill better than any candidate we have had in quite a while. I gotta admit, im impressed so far with his organization. If this isnt an aberration, Obama is in big trouble. His only hope of reelection was to out campaign Romney.

Exactly – I didn’t have time to make that point – but you hit it.
What do all of the foreign companies that move operations to the US have in common? Bayam isn’t smart enough to know, so I’ll answer – they’re all in right to work (ie non-union) states with lower tax rates.

As the Administration stresses every month, the monthly employment and unemployment figures can be volatile, and employment estimates can be subject to substantial revision. Therefore, it is important not to read too much into any one monthly report and it is helpful to consider each report in the context of other data that are becoming available.

Liberal-speak decoder machine says:

If the monthly reports are positive, praise Obama. If negative, its Bush’s fault. And ATMs.

Final image of Romney gesturing with his thumb back toward the Solyndra sign with the line: “And crony capitalism like this… did not help.”

“Did not help.” A bit soft. Anticlimax to a very effective ad. Wish he’d said: “And crony capitalism like this… made it worse.” More of a punch line.

Romney can throw harder punches. Not wild swings, not flail. Just quicker, harder, sharper jabs. But Romney’s Romney and this was a very good ad, both for the content and it’s exquisitely-timed release.

Romney wants it real bad and so does his team. I was wrong about Romney and am happy he has some fire in his belly. :-)

Punchenko on June 1, 2012 at 11:41 AM

I have not been a Romney fan up to this point, but a thought just hit me – what has Romney’s career really been about? – Bain, Olympics, even Massachusetts. His specialty has been taking over failing companies/organizations and turning them around to make them successful. So I’m not surprised he sees a big opportunity to turn around the US – which is currently failing miserably under our current “management”.

So… how long can this administration keep blaming GWB??? Honestly, at what point does the fingerpointing stop?
I saw someone post so aptly in a different thread how Scott Walker didn’t blame his predecessor… he just fixed the problem. What is it about D’s that they can NEVER accept blame when they create a problem (like Obamacare for example); and never just fix a problem they inherited, but just let the situation get much much worse than it ever was before while pointing fingers instead of fixing it?
Apparently the best comparison for D’s today is that of a baby. Cries when it wants something; can’t even wipe their own bottoms, but depend on everyone else to do it for them, and then cry when it isn’t right. So at what point do the D’s “grow up” and become adults like Scott Walker? I’m proud to be a Cheesehead. We have Scott Walker, Paul Ryan, Ron Johnson… and Donald Driver!

I am middle class. The only thing I’m rejoicing about is that, for yet another month, Obamanomics is failing miserably. Every month that it fails, the American people wake up to the fact that your socialist endeavors drive them further into the gutter. We rejoice because we know the end of your leftist bulls**t is near.

Too bad. Little Debbie, representing the DNC, took possession of this economy one year ago this month.

Flora Duh on June 1, 2012 at 11:50 AM

And don’t forget:

“My administration has a job to do as well and that job is to get this economy back on its feet, that’s my job and it’s a job I gladly accept. I love these folks who helped get us into this mess and suddenly say ‘this is Obama’s economy,’ that’s fine, give it to me, my job is to solve problems, not to stand on the sidelines and carp and gripe. So, I welcome the job. I want the responsibility.”

It’s amazing that so many in the echo chamber actually believe that a few regulatory or other changes will actually fix the economy and undo the fundamental forces of globalism that have moved millions of jobs from the US to abroad.

bayam on June 1, 2012 at 10:24 AM

Over 2000 new regulations from this administration, including ones that vastly increase the cost of energy, now and even more so down the road. As a business, you have to factor in future costs when deciding what to do with your profit. You can’t count on sales, but if you hold onto more of that profit for future costs, you don’t hire, give out the same size raises, or invest in business growth.

The Obamacare mandates that have already taken effect increased insurance costs substantially. If the Bush tax cuts expire, even for only 250,000+ people (that’s a teacher and firefighter in NY, or a small businessperson in most of America), that’s an additional expense to budget for.

Another commenter mentioned uncertainty, and with this administration it abounds. What he can’t get from Congress he puts in place with executive orders and regulation.

Finally, deficity spending scares business into hoarding as well. Eventually borrowing rates will HAVE TO go up, and the more we borrow the sooner and steeper those increases will be. The alternative is massive inflation. In either case, businesses need to keep as much cash as possible. Against borrowing worries, so they don’t have to borrow as much at the higher rates. Against inflation because the cash becomes worth less and less.

Want to stop jobs heading overseas? Make it easier and more profitable to do business here. Reform the education system so we have more people with the math skills of Indian students. Break the teachers unions and create school competition and choice.

I would eliminate corporate taxes altogether and collect that tax money from the salaries of the people they hire with that extra money and the people hired at other places because those hired people are spending salaries, not deficit increasing unemployment supplements . . .

If Carthage had won instead of Rome we would have world peace now and all the economies of the world would be humming along. See how easy vain and idle speculation is. Your claim that we would have gone into a economic death spiral without all the spending is vain and idle speculation. Makes you sound smart but it means absolutely nothing. Just like Rome won and the world is what it is. The spending over the past 3+ years is what it is and the economy is still sputtering along. The promises made for that spending have not materialized. You guys own it.

In light of the revised downward job numbers for March and April, will those extended benefits that were discontinued in May for the unemployed be reinstated? Kinda funny how jobs numbers end up so far below expectations yet the rate still remains low enough to disenfranchise all those people. If the jobs don’t exist or aren’t being created, what are people supposed to do?

Except that we have continued spending the equivalent of that stimulus yearly since and the GDP is still moribund. Why do you think the senate is not passing a budget if not to hide the fact that they have continued to spend that extra 800 billion a year.

I’m expecting an “unexpected” 7.9% unemployment to be reported in October and the lemming MSM to tout the wonderful turnaround that Obama has perfected. They can lie all they want. People are living this!

It’s amazing that so many in the echo chamber actually believe that a few regulatory or other changes will actually fix the economy and undo the fundamental forces of globalism that have moved millions of jobs from the US to abroad.

bayam on June 1, 2012 at 10:24 AM

Bravo to all of your great analysis this morning. I’m less versed in economic nuts and bolts, but its good to see that the progressive posters around here have all the bases covered between us.

This Romney fellow is beginning to show some promise…perhaps he learned something from 2008.

Ugh. Do you actually think Romney became a billionaire by accident? He didn’t win that money by playing the lottery. He didn’t inherit it, either. He earned it by being shrewd and brilliant. Evidently, he was also endowed by his creator with a pair of brass ones.

Germany is a “right to work” country. Closed union shops are illegal, unlike the US. Would you advocate for all US states becoming “right to work?”

visions on June 1, 2012 at 11:08 AM

There’s no need for unions in Germany because they offer citizens a welfare safety net including universal healthcare and subsidized higher education. You offer that to every American and unions disappear over night.

There’s no need for unions in Germany because they offer citizens a welfare safety net including universal healthcare and subsidized higher education. You offer that to every American and unions disappear over night.

libfreeordie on June 1, 2012 at 1:37 PM

Clearly the answer to all of our economic woes is to have the government (i.e., productive taxpayers) blow tens of trillions of dollars paying for pretty much every facet of the unproductive citizens’ lives.

Great post. It always amazes me how liberals will know how every last penny effects welfare, but have no clue how a tax increase or a new regulation effects business or an individual.

It’s like they think that all small businesses, and even public corporations, have bank accounts set aside with the label “extra money for fairness that we don’t need” that they can just dip into when a liberal comes up with a new and ever more obnoxious way to steal from the “rich” because it’s the “fair” thing to do.

I’ve never seen the logo of this company before. It would be interesting to talk to the graphic artist who designed the logo, and ask her, “What went into the decision to emphasize the “O” like that? What kind of direction did you get with respect to this logo? What was that supposed to communicate?” As we know, it’s all about the “O”. Obama, Obama, Obama . . . Crony capitalism at work; one hand washing the other. Good on Romney for foregrounding not just the failure of shoving money at something that can’t compete in the marketplace, but also the crony capitalism aspect of it. That part is not just bad economics, it’s criminal.

One of the best political ads I’ve ever seen, absolutely devastating and I hope they put a shorter version on TV. Great music, and totally hip and modern with the burned out camera filter. IDk who’s doing these ads for Romney, but keep it up!

There’s no need for unions in Germany because they offer citizens a welfare safety net including universal healthcare and subsidized higher education. You offer that to every American and unions disappear over night.

saw this coming months ago. Once Gasoline topped $3.50/gal the writing was on the wall for anyone that wanted to listen. Now that gasoline is dropping below 3.50 there will be some stabolization but until gasoline goes far below $3.00/gal we w ill NEVER have economic boom times. This isn’t rocket science. Cheap gas/energy boom times expensive gas/energy depression.

There’s no need for unions in Germany because they offer citizens a welfare safety net including universal healthcare and subsidized higher education. You offer that to every American and unions disappear over night.

Arbeitslosengeld I (full unemployment benefits)lasts for 1 year or 18 months if you are over 55.

To qualify for Arbeitslosengeld II after you deplete Arbeitslosengeld I, the state looks at your savings, life insurance and the income of spouse or partner. ONLY if these assets are below a threshold level can a claimant get money from the state.

The current threshold level is €3,100 for free assets and €250 for fixed retirement assets, both calculated per capita and lifetime year. Additionally, every employable individual in a communal household (persons living in and depending on the resources of the claimant), can have one car worth about €7,500 and a self-used house of 130 square meters living space.

If you have more than that, then you do not qualify for Arbeitslosengeld II and are SOOL.

3. Subsidised higher education

In 2010, five of the 16 states of Germany charged tuition fees at state-funded colleges. There are no university-sponsored scholarships in Germany to cover cost of living and books.

More importantly, not everyone gets to go to college. You have to pass several exams. You must hold either an Abitur or Fachabitur certification. They must take the Begabtenprüfung (“Aptitude Test”, consisting of a written and oral exam). At one time (and it may still be the case), you had to have a minimum of an IQ of 125 to attend a German university.

Now, what else? Oh…

“There’s no need for unions in Germany”

25% of all employees in Germans belong to at least one of several single trade unions for special economic sectors. The largest single trade union is the IG Metall with about 2,300,000 members by 2010, organising employees in metal (including automobile and machine building), electronics, steel, textile, wood and synthetics industries.

In contrast, only about 7% of the US population belongs to a union….and appear to be quite happy about it.

“Did not help.” A bit soft. Anticlimax to a very effective ad. Wish he’d said: “And crony capitalism like this… made it worse.” More of a punch line.

Sounds like Mittens went off script right there at the end. Agree, it’s a bit off compared with the confident attack of the main part of the ad. Actually, I think he didn’t need that last line at all.

Still going in the right direction, though, not quite there yet. Mitt needs to focus on individuals as well, not just the job stats. Talk to real people with real problems. Get them on the tube. That will resonate as much as the big picture.

EXACTLY! I have friends that are business owners and they do not expand because of INCREASED regulations and Obamacare’s uncertainties.

g2825m on June 1, 2012 at 10:49 AM

This is what people like bayam fail to understand regarding the real world.
My husband & I are probably never going to be able to expand our trucking business & our cattle herd just bcs of regulations.
Do you know you are what’s called a CAFO is you have more than like 300 head (Concentrated Animal Feeding Operation) being fed in the same general area for more than a few months.
And as such, you must get a permit after you have constructed a urine feces containment system. And the base cost of one of those, no matter the size, is about $50,000.
And let’s not get started on DOT regs which often do nothing to keep anyone or the roads safe. They are there to generate REVENUE for the state & Feds.
We also have a friend who has a boiler repair biz in Bismarck.
He could expand to be someone who employs prolly 10 or more people.
But he just keeps it small & turns away buisiness & only has he & his dad working on it bcs if he expands, the regs are crushing & a headache & he would be working far harder to pay the taxes than it would be worth.

Stop calling Solyndra et al. “crony capitalism.” It’s cronyism, pure and simple. Obama took money from the taxpayers and gave it to his friends. Call it cronyism, call it Royal largesse, call it theft, call it moral hazard. All of those terms fit. But capitalism, it ain’t.

You people are living in a bubble- after the average middle class family lost 35% of its net worth and both households and the private sector found itself under overwhelming debt, there was no path to the good old days. It’s called a “balance sheet recession” and its not going away if Romney gets elected.

bayam on June 1, 2012 at 10:52 AM

The reason you will be proven wrong boils down to one word-

Confidence.

American business are not hiring because they lack the confidence that the future will be stable, with pro-business policies which would likely reward investment, including job creation.

The American people are not spending because they lack confidence in the future, given the policies put in place and the policies promised by this Administration.

Wait until after President-elect Romney is inaugurated and you will see American business, and the American people unleashed.

I guess the health care industry wants me to believe what they are preaching with the government telling us what to do in every phase of living. Cancer research teams of doctors and medical specialists spending billions upon billions searching for answers while a fifteen year old high school student from the State of Maryland wins a science fair with a non invasive test that’s ninety percent effective in testing for pancreatic cancer. I think to myself, “What the heck are these other people doing?” And why should I believe one word of the BS that comes across the air waves.